Kleros – a court system for the digital economy
The cryptocurrency trend is now expanding to court systems with Kleros. Blockchain tech is growing so fast that we’re now applying it to how we enforce justice. There might be a lot of questions, such as “Why would we need that?” This is becoming a huge necessity as our world accepts a digital economy.
Technology has changed how our world works so much that it’s completely different from the past. As a result, our needs have become so advanced that the old laws can’t keep up. In response, we must start a digital transformation for our systems. Now, Kleros is sparking this positive change by providing an arbitration court for the digital age.
This might overwhelm many readers, so I’ll start by explaining the role of an arbitration court in real life. Then, I will discuss why cryptocurrency networks need one. After that, I will explain how the Kleros blockchain serves as a solution. More importantly, we will discuss whether it’s a good idea to invest in its native crypto token.
What are arbitration courts?
“Decentralized Courts: A Legitimate Solution?”. Check this article about Kleros and other decentralized justice protocols published in the latest edition of the Decentralized Law newsletter by @banklessDAOhttps://t.co/TgHZoLudRf
— Kleros (@Kleros_io) December 24, 2021
A real-life economy is made up of people exchanging goods and services. Almost everyone knows this, but they often ignore the human factor of this definition.
When you buy something, you agree to pay a certain amount for a product or service. On the other hand, the provider will receive your funds and give you your purchase.
The same goes for workers and employers. You perform a specific task for your employer, and they provide an agreed amount of cash in return.
While this may seem simple, it doesn’t always work without a hitch. For example, the product or service you received may not meet the quality that it should have had.
You can also face similar problems in freelancer platforms like Fiverr. This is when people go to court, so the system can help settle their disputes.
Aside from judges and lawyers, it involves a panel of jurors. These are people with skills related to the case, so they could help resolve it.
In the US, courts could summon folks into Jury Duty, and they must cooperate. Unfortunately, the current arbitration system has a lot of flaws.
The court might work in favor of the side with the most money. Also, you will likely rack up many costs from using it. More importantly, it’s too slow for our new economy.
Why would a growing digital economy need Kleros?
Photo Credit: kleros.io
Nowadays, online shopping is a common thing for people around the world. We’ve taken it one step further by having e-wallets on our phones.
You may have noticed the worldwide cryptocurrency trend right now. At the time of writing, there’s a major crypto market crash, so many people think this is the end of the asset.
If you look outside the market, you’ll see crypto tech that continues to expand into more parts of our lives. Soon, it will be our way of exchanging goods and services.
The old arbitration courts would not keep up once that happens. That is why Kleros wants to solve this problem by becoming a decentralized court for our digital economy.
Read More: How Will Web 3.0 Shape Our Future?
How does Kleros work?
Photo Credit: kleros.io
Let’s say you want to file a case. You can submit the dispute on the Kleros platform and select the court you need. Kleros is a crypto platform built on the Ethereum (ETH) blockchain.
For example, those with insurance issues will pick an insurance court. Each court has smart contracts that execute its laws. These are a feature of crypto networks.
Smart contracts are agreements that execute once a certain condition is met. They don’t need a third party to do this to apply laws to the letter.
Also, Kleros will find people who will serve as jurors. This is when its Pinakion (PNK) token comes into play. Jurors must stake PNK to be chosen, and their chances increase the more they stake.
This makes sure that jurors will be serious in dealing with the case. If they violate any of the rules, Kleros will take their staked funds. Also, depositing PNK prevents Sybil attacks.
It’s when a person takes control of a crypto network by dominating it with fake nodes. It can still happen with Kleros, but the attacker will need to pay so much that it may not be worth the price.
2021 was an amazing year for the growth of the protocol, ecosystem, team, and most importantly, the community.⚖️👥Our ecosystem map grew a lot from January to December, with several pending integrations to be announced in the coming year. 🚀 See you in 2022! 🎉 [20/20] pic.twitter.com/VKPLDCY4ZT
— Kleros (@Kleros_io) December 31, 2021
Like a real-life court, the Kleros jurors will assess the dispute by looking over the evidence. Once that’s done, they will vote for or against the client.
When voting ends, jurors must reveal their votes. If they don’t, they will lose their staked PNK. This also happens if they don’t work coherently with the other jurors.
Kleros will then reward the jurors who followed the rules with more PNK. Meanwhile, the smart contracts of the court will determine which party will pay for the arbitration fees.
A party might file an appeal if they didn’t like how the case turned out. However, they will have to get twice the number of jurors plus one. As a result, they must pay a higher fee.
Should you invest?
Can blockchain arbitration be enforced in court? Yes, it can. Learn how a Kleros ruling was enforced in a leasing contract in Mexico and what this means for the future of justice.https://t.co/yR4sskLxpQ
— Kleros (@Kleros_io) January 10, 2022
If you’ve noticed, the Kleros system turns jury duty into remote work. If you have PNK tokens, you can help settle disputes to earn money. The HYVE Freelancer Platform also uses the system.
This may read like a fantasy novel or film, but Kleros is the real deal. It won the Blockchains for Social Good Prize from the European Commission.
Now, you might be wondering whether you should invest in PNK tokens or not. You could purchase them from the following crypto exchanges:
At the time of writing, the price of a PNK token was $0.0755. It had a market cap of $46,876,906.30 with a circulating supply of 620,348,297 PNK.
Note that crypto prices may change significantly within the next 24 hours. Kleros may seem like a good investment because of its promising features.
However, you must plan your investments carefully. After reading this article, click here to visit the website so that you can learn more about Kleros and its PNK tokens.
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Final thoughts
Once you’re done learning about Kleros, start reading more about cryptocurrencies in general. See how they work and how they are changing the world right now.
Then, learn more about other investment options such as stocks, bonds, and real estate. That way, you can find the best ones to further your investment goals.
Fortunately, reading more Inquirer USA articles will let you do just that. They will keep you up-to-date with the latest and greatest in crypto, finance, and everything else under the sun.
